The pre-paid phone card industry is rapidly growing, and more people are buying and using the cards, some problems have been reported.

Consumers can avoid many of these by checking things out in advance:

Ask if the retailer will stand behind the card if the telephone service is unsatisfactory.

The pre-paid phone card industry is highly competitive. Beware of very low rates, particularly for international calls. They may indicate poor customer service.

Look for disclosures about surcharges, monthly fees, per-call access, and other fees. For example in addition to the rate-per-minute or unit, some cards add a surcharge to the first minute of use. Others charge an activation fee for recharging cards.

Check on expiration dates. Most cards expire one year after first use.

Look for a toll-free customer service number. If the customer service number isn't toll-free or displayed, it may be difficult to contact the company if you have a problem with the card. A busy signal on the customer service line may be a tip off to a rip-off.

Be sure the card comes with instructions that you understand.

Make sure the card comes in a sealed envelope or has a sticker covering the PIN. Otherwise, anyone who copies the PIN can use the phone time you've already paid for.